This research project provides background and explores issues related to management of Aviation Fuel (AVFUEL), Cost Per Flying Hour (CPFH), and the overarching Flying Hour Programs (FHP) for the Navy and the Air Force. Due to the variables used in the CPFH formulation and the complexity of flying hour budget formulation and execution, each armed service uses somewhat differing procedures in managing the FHP. This research focuses primarily on aircraft flying hours, and specifically the management of Aviation Fuel (AVFUEL). This research provides an overview to explain how the CPFH is used as well as analysis of the tasks of monitoring and managing the FHP based on the continuous flow of execution information from operating units. Also provided is a detailed evaluation of the CPFH concept in practice and a description of the structure used for each service, comparing the two. The research project focuses on the importance of management and decisions made at the Air Type Commander (TYCOM) and Major Command (MAJCOM) levels. The project reviews the Air Force process of FHP management centralization, in part to see whether there are lessons from the Air Force approach that may be applicable to improving FHP formulation and execution in the Navy.

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